Airport Development and Oil Price Uncertainty

<div><font size="3">Jet fuel prices are up 200% since 2000.&amp;nbsp;These price increases, along with a weak economy, are causing airlines to cut schedules and drop service to some communities.&amp;nbsp;Domestic flight schedules for October 2008 (Official Airline Guide) show many airports are likely to see declines in air service of 5%-10% with several airports in the 12%-20% range. Higher fuel prices could discourage non-business travel and limit the growth of some business travel.&amp;nbsp;In the short term, airports can help airlines by shifting some revenue collection to non-airline services such as parking and concessions. </font><font size="3">The current level of uncertainty about future oil prices poses significant challenges to airport development.&amp;nbsp;Unknown is the effect of sustained, long-term high fuel prices on airlines and airports. Effects on general aviation are unknown as well.&amp;nbsp;</font><font size="3">The objective of this research would be to provide airport decision makers with tools to plan for facilities in an era of oil price uncertainty. </font><font size="3">This research would provide information on potential future oil prices, and analyze the relationships between oil price, aircraft activity, and airport development.&amp;nbsp;It would also identify strategies for reduced fuel use, including airport operational changes.</font></div><div><font size="3">The effect of high fuel prices on airports is expected to be uneven.&amp;nbsp;Commercial airports with significant international service and a large origin and destination market are less likely to see significant changes in airline schedules.&amp;nbsp;In contrast, spoke airports in smaller communities and airports that rely on smaller regional jets (less than 70 passengers) service are more vulnerable to schedule changes.&amp;nbsp;General aviation airports that depend heavily on fuel sales and those that primarily accommodate discretionary flying have fewer options to cover costs.&amp;nbsp;</font><font size="3">The industry must understand the relationship among sustained high fuel costs, airline and general aviation activity, and airport revenue.&amp;nbsp;Such understanding will reduce the uncertainty over timing and scope of capital investment decisions and allow airports to identify actions they can take to cover operational costs during periods of reduced air operations.&amp;nbsp;</font></div>

Language

  • English

Project

  • Status: Proposed
  • Funding: $400000.00
  • Contract Numbers:

    Project 3-15

  • Sponsor Organizations:

    Federal Aviation Administration

    800 Independence Avenue, SW
    Washington, DC  United States  20591

    Airport Cooperative Research Program

    Transportation Research Board
    500 Fifth Street, NW
    Washington, DC    20001
  • Project Managers:

    Goldstein, Lawrence

  • Start Date: 20080816
  • Expected Completion Date: 0
  • Actual Completion Date: 0
  • Source Data: RiP Project 18707

Subject/Index Terms

  • Uncontrolled Terms: Fuel prices
  • Subject Areas: Aviation; Planning and Forecasting;

Filing Info

  • Accession Number: 01459837
  • Record Type: Research project
  • Source Agency: Transportation Research Board
  • Contract Numbers: Project 3-15
  • Files: TRB, RiP, USDOT
  • Created Date: Jan 3 2013 1:13PM